China manufacturers’ outlook is positive

[ 時間：2010-12-14 點擊：4652 ]

Chinese manufacturers were upbeat about business in a survey, which should help ease fears of a hard landing.

HSBC’s China purchasing managers’ index rose from 51.9 in August to a five-month-high of 52.9 this month, thanks to higher survey readings of production and new business. In July, the index fell below the key 50 threshold which separates expansion from contraction.

Qu Hongbin, China chief economist at HSBC, said the “upbeat reading” implied the growth slowdown seen in previous months was decelerating.

“A pick up in new orders means that domestic demand is still strong,” Mr Qu said. “Despite uncertainties on growth in global demand, we expect China to rely on continued investment in ongoing infrastructure projects and resilient consumption to grow by around 9 per cent in the rest of the year and 2011.”

Chinese stocks are higher, led by banks and commodity producers, after HSBC’s China Purchasing Managers’ Index showed that manufacturing expanded faster this month. The Shanghai Composite Index is up 0.8 per cent.